Lilac’s commitment (and money) should take Lake Resources one step closer to producing what it calls “the world’s cleanest lithium”.
Over the past few years, he’s been testing the technology with Lilac, which is backed by Breakthrough Energy and whose board of directors is made up of billionaires like Gates, Bezos and Michael Bloomberg.
The deal, due to be announced this week, sees Californian Lilac finally committing to work with Lake Resources in Kachi.
Sources said Lilac will also need to fund the future development costs of the project, estimated at around $ 50 million.
Kachi’s lease covers 75,000 hectares and is among the 10 largest brine resources in the world, according to Lake. The company expects 25 years of production to use up to 20% of the resource, with production in the first half of 2024 expected to be around 25,500 tonnes of lithium carbonate per year.
Lake previously told shareholders it could cost $ 544 million to reach this point, while it would cost $ 107 million per year to run the project. Annual EBITDA could be worth $ 260 million, he said.
The project is located in the lithium triangle of South America, which includes regions of Bolivia, Argentina and Chile that together produce 40% of the world’s lithium. The five largest lithium producers in the world are located in the region, including Orocobre.
Lilac uses patented ion exchange technology, which allows it to produce lithium from brine resources at a much lower cost and environmental footprint.
Lake is just the latest of the lithium miners to head overseas, as demand for batteries and electric vehicles drives up stock prices in the industry.